The federal government has recently launched a Red Tape Review across the regulatory system, which could present opportunities for the cannabis industry’s lobbying efforts.
On July 9, the Treasury Board of Canada announced that, over the next two months, ministers across various federal agencies will review regulations within their portfolios and take steps to remove outdated or duplicated requirements. The 60-day deadline for feedback will end a few weeks before Parliament returns following the summer recess.
While the agency notes that regulations are vital for safeguarding the health, safety, and security of Canadians and the environment, it also emphasizes that they must support a competitive and productive economy. By cutting this red tape, the Treasury Board argues, Canadians and businesses can save time and money while still maintaining public safety.
“Regulations play a key role in protecting the health and safety of Canadians — but to stay effective, they must be regularly reviewed,” said Shafqat Ali, president of the Treasury Board, in a press release on July 9. “Cutting unnecessary red tape is essential to unlocking Canada’s full economic potential.”
This could include, for instance, actions to:
Representatives from the cannabis industry say they have been engaging with their federal counterparts to help highlight areas they believe the Minister of Health, who oversees Health Canada—the federal regulator in charge of the cannabis file—can identify some potential areas for regulatory streamlining.
Paul McCarthy, the president of the Cannabis Council of Canada (C3), says he’s cautiously optimistic, but notes the industry has been waiting on other changes the federal government has signalled movement on in the past.
“It’s great to see the government taking this initiative, but like anything, whether it is a success is dependent on whether it delivers meaningful change,” McCarthy tells StratCann. “We’ll engage, but question number one is: where are you on the things that we have already been working towards, like moving to a single, national excise stamp, for example?”
The federal government included a consideration to explore a single, harmonized federal excise duty stamp as part of a red tape reduction measure outlined in its 2024 Fall Economic Statement.
One example McCarthy gives that he believes could help Health Canada reduce bureaucracy is the current requirement for duplicative reporting from licensed producers, not only to different federal agencies but also to provincial agencies.
“I think a good example would be duplicative reporting. Licensed Producers need to provide monthly reporting to both Health Canada and CRA that is effectively the same information,” he adds.
Pierre Leclerc, president and CEO of the Association Québécoise de l’industrie du chanvre et du cannabis (AQIC), notes that the cannabis industry contributes billions annually to Canada’s GDP, and would benefit from more streamlined and business-friendly regulations.
“It is important to recognize that the strength and long-term viability of hemp and cannabis businesses is critical to achieving the core public health and safety objectives of legalization: minimizing the harms associated with consumption by providing access to high-quality, rigorously regulated products; and steering consumers away from the illicit market,” wrote Leclerc in a press release. “However, a range of regulatory, commercial, and fiscal barriers continues to undermine this progress, perpetuating stigma and allowing the illegal market to persist.”
“These challenges include restrictions on product advertising, tax burdens that give illicit operators a price advantage, exclusion from government support programs, and difficulties accessing essential services such as banking and insurance,” he added.
POUR LIRE LA SUITE: StratCann
POUR LIRE LE MÉMOIRE DÉPOSÉ PAR L'AQIC: Mémoire
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